Why Is Europe Always Lagging Behind the US?
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- Опубліковано 20 чер 2023
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The US has had a much greater level of growth than the EU in the past decade despite the pandemic and Europe having a large collection of advanced economies with highly educated populations. Why is Europe always lagging behind?
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Why are you videos always wrong though?? And lagging behind in what ? Gun violence ?
A land value tax (from the ideology of Georgism) and economically integrating more of Europe into the EU could help imo.
europe and european union is not same thing, Ukraine and Kosovo is not part of european union
@@azumishimizu1880 because is PROPAGANDA. The Americans must BELIEVE that they are ahead of Europe ahahahah. In reality US is a THIRD WORLD COUNTRY.
ua-cam.com/video/REni8Oi1QJQ/v-deo.html
You left out a lot of other factors:
- Europe’s population is declining or stagnant, and is aging more quickly than the US’s. Meaning a smaller portion of a declining population can contribute to the economy.
- Europe’s economic relationship with Russia, a country with whom it is currently fighting an economic war. When European economies need petrochemicals, they currently have to pay through the nose, while much of that money goes to… the US.
- Europe’s geography is good, but not quite as good as the US’s. One major unified river system, no external threats, direct access to two major oceans.
The population demographic issue is something I am very shocked he did not address. Europeans know how to add value to their economies, they just do not know how to have children like East Asia XDXDXD
aging population isn't a bad thing once the population stabilizes
US has immigration to prop its economy up. Europe is terrible at integrating its immigrants and has less of them.
The population aging issue will affect each and every nation on Earth as we go from high birth rate to low birth rate countries. By the grace of God our technology has given us arguably the biggest change humanity has ever experienced...now, few of us in the developed world have to contend with the horror of watching a child die during peacetime. Before around 1850, people were still losing 50% of all babies under the age of 5. My great Grandma was born in 1890, that's only 3 generations back. It's the greatest revolution ever seen, and eventually the world has to go back to the sorts of populations we had in 1900, for the sake of all of us...by tbe way, it does mean we have to have some babies just not as many as in the past. I've had 3 so done my part
How many migrants does Europe invite in each year (sorry, they are called refugees now)? I thought for sure that was the deciding factor to invite them in, and not compassion!
They currently have to pay through the nose because the entire system was reliant on Russia! Knowing what a wild card russia could be and that they certainly would turn the taps off to use as political leverage, no contingency plan appeared to be developed. Once new systems are in place to get NG from the middle east, the prices should stabilize!
The US has no external threats? Did you realize that planes are able to cross the world in less than a day? ICBM missiles in an hour or 2? We may not have threats on our doorstep (ahem, Cuba) quite like Europe has had, but its a small world after all! We dont sink a heafty portion of our GDP into defence spending ONLY to make the military-industrial complex rich! We arguable have mORE external threats due to our 'overbearing' presence in the world ( that helps out our allies immensely)!
Not lagging in Vacation Time, Europe 💪
Having more vacation time sounds like island time mentality.
Work for a european company in the US then stonks
Aldi workers enjoying their Sundays
Government jobs in America probably have better vacation time(shorter work hours) than European countries
Unemployment is now called “vacation time” 😂
I believe Germany could really be ahead in a few industries if they relaxed their bureaucracy and heavy taxation system. German companies have started to leave the country and moved to Switzerland, Austria, Sweden, Denmark, etc. The irony is that at least 2 of the countries I've mentioned have better social programs than Germany BUT their taxation laws are relaxed for start ups and new companies so they can grow before they can be a real contribution to the economy. Germany basically encourages companies to leave and demotivates new smaller businesses.
germany is such a joke of a nation when it comes to create technology
In the list of top ten biggest tech companies of the world, there are six american companies but not a single german company
I work as a software engineer
In the list of top ten biggest software companies, there are 9 us companies but not a single geman company
gemany is an embarasment of a nation when it comes to creating tech in the past few decades
@@larrybuchannan186 I wouldn't entirely agree with you. There are large software companies, like SAP, Siemens and a few unicorns worth billions like Celonis. However I believe this could be very different, they could have way more companies if the market, together with regulations, in Germany would allow it. Lemme explain what I mean by that. Germany has a culture of being anti-innovation and anti-modernisation. Has nothing to do with what a company can do as a service or tech product but if Germans and German companies are willing to use it. For example, at VW you still have machines programmed in a language nobody knows from the 70s-80s just because Germans aren't willing to spend a few hundreds to modernize their systems. That is one example that can be easily extrapolated to different areas. I still remember having to work with a company that had the opportunity of launching generative AI like ChatGPT today. Unfortunately the boss said "let's wait to see the Americans prove the concept and we'll work on it later". That's the problem at hand, in the whole country.
Don’t underestimate the Germans.
@@craigobrien781 stop repeating this puritanical sentence. Germany is nowhere as strong as it once was. Germans won't wake up from their delusions, just as Brits refuse to.
@@nigstar1239yes many people here don't realize that the government failed in economical development because they failures that were made had no short lasting impact but a long lasting impact which starts to be noticeable after a few years. Now they blame the CDU for the failures because we start to notice it's impacts but WAY to less people understand what our current government is doing. The people here are crazy like in many other countries but the difference is the government is MORE crazy.
Your videos are always fascinating and interesting, well done mate!
Being born in the EU, the USA , or AU means we've won the birth lottery. Our lives are so drastically better than the average human it's hard to fathom. Being in the top 1% is pretty sweet. (making $34k a year puts you in the top 1% globally)
I'm glad to see this comment.
People acknowledge privilege as a concept, but rarely discuss it in the context of international privilege. Globally, Americans/Euros/Aussies are the privileged upper class.
The question is how long will this and its importance be forgotten until it's no longer true?
The only problem is how does that translate if you live in those countries. The amount you make is relative to where you live. Sure $34k a year might sound like a lot in the world standard but if you live in the US and 80%-90% of your take home pay is used to just live then it still isn't a great living situation. There was a report by lending club that states 60% of Americans live paycheck to paycheck which means they only make enough to just survive. God forbid if these people have an unexpected medical cost then they may end up in debt. In the US medical costs are extremely high. According to Ramsey Soultions, 77% of Americas are in debt. So $34k in the US still means you are poor.
@@tamwilfred ,
Here's something I did once to see how f***ed some are in different places:
1. Get the average house price for a given country.
2. Get the average salary in the same country.
3. Divide the average house price by 50% of the average income.
4. Say you start working at 18 or 21. So add that number you just found to 18 or 21.
That final number is a ball park estimate of how old you'll be before you buy a house in that country.
You'd be surprised who is on the top and bottom of that list.
34k in top 1%? Waoo!! Thats low with inflation.
1. Europe and the European Union are not the same thing. This channel had a chronic tendency to use them interchangeably.
2. The EU is relatively poor in natural resources (and always has been).
3. Europe has a lot of medium-sized market leaders in very specific areas. The German Mittelstand is the most extreme example of this, but it's something you find across Central, Northern and some of Western Europe.
4. EU countries prioritise differently to the US. Workers' protections, health insurance, fair wages, work-life balance, environmental protection etc. are much more important than in the US where, after decades of union-busting and deregulation, workers are seen more as a commodity (relatively speaking, in a comparison between developed democracies and ignoring the absolute travesty of a workers' rights situation you find in developing authoritarian countries e.g. 996 or similar "working cultures").
It also means that, in Europe, due to strong worker’s rights, you cannot easily fire someone who does not do anything. Also, you can’t change a whole system with a better one (replacing taxis with much better UBERs for example) due to these same worker’s rights.
@@manny27392It’s not like it’s easier in the US to change anything.
@@Maelstrommeuhhh… yes it is. Hence why we have Uber and not taxi protests blocking our major cities roadways…
Yeah this video is one of the worst ones this channel has produced in a long time.. sad
@@mitchellscheer677uber isnt the only ridehailing app. Nowadays bolt is way cheaper than uber and better
really great that you mentioned a previous video that covered the same or similar topics while crediting them, as a new-ish viewer I wanted to tell you I admire that practice a lot
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy. The ETF/Equity market keeps swinging.
When the news is the worst and investor confidence is at its lowest, indices routinely turn from a bear market to a bull market. This illustrates how quickly the market's direction may change.
@@mcginnnavraj4201 You will need a strong FA to help you through the current market turmoil. I've been talking to an advisor for a while now, mostly because I lack the knowledge and energy to deal with these ongoing market conditions. I made more than $220K during this slump, demonstrating that there are more aspects of the market than the average individual is aware of. Having an investing counselor is now the best line of action, especially for those who are close to retiring.
I've been consulting with SALVATORE FORTUNATO SOFIA, a financial consultant whom I learned about and got in touch with thanks to a Kiyosaki radio interview she was featured on. Since then, she has served as the point of entry and departure for the equities/stocks we have emphasised. A search using her name on the internet can be done if tracking is necessary.
@@hannahdonald9071 She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
@@hannahdonald9071 🤡🤡🤡🤡🤡🤡🤡🤡🤡
The most obvious factor is the sheer difference in size of 'addressable market' - Europe with its many languages, cultures and legal systems is far more difficult to address all at once in comparison to the US or China.
This is the more realistic perspective. I'd also add, though I know many Americans would disagree (despite not living outside North America to see for themselves), Asian countries are currently more concerned with social stability than the most Western nations are. And it shows.
Having lived in North America, Europe, and Asia, I have to say North America showed the most levels of tensions and hate towards each other.
This is easy to see within the EU, lots of mid-size companies in many countries never really venture outside of their local markets. German companies rarely go outside the German speaking countries, Nordic countries stay within the Nordics for the most part, French companies are rarely seen outside France, Switzerland and Spain, and so on and so forth. If they're strapping themselves so much there's no chance for them to grow to become global power players.
@@timjrgebnyou need to take into account how culturally homogenous each country is. I think the world will find that the US is surprisingly resilient, relative to the amount of cultural difference it's working through, as it becomes more globalized and unified
@@drchickensalad
I'm not sure if you're looking at homogeneity in a country as a good thing or a bad thing. Arguing for or against homogeneity is a debate on multiculturalism I think, which isn't necessarily what I was aiming at. But you could argue it plays a part in a nation's social stability.
In terms of homogeneity, if we are thinking regionally, North America is extremely homogeneous across its landmass compared to the rest of the world. It's countries have simply not had nearly enough time to develop their regional cultures.
What the world hasn't got an answer on yet is whether you can import many different cultures and "work them out." I'm sure the US will show us that in time.
I hope the US is resilient, as there are plenty of nice people there. But I wouldn't say the world is paying as much attention as they used to considering the world is moving more towards a regional-based order than an international-based order.
Note: These comments are by someone who was born and raised in the US and left in my late 20s.
@L: Good point. Here in California, we have “special blend” gas (and milk) which means Californians have to pay more for gas and milk compared to the rest of the country. I can now just imagine this for ALL goods in EVERY state to match Europe. Maybe that allows Americans to romanticize Europe’s small scale of the food economy, which allows small companies to sell goods, while the USA has chosen cheap processed preservative food instead.
Loved this, thank you
Thanks for the video, mate..
Europ is not The head leader for 2 reasons.
1) we're ununified. Europe is not one nation. And while that comes with advantages, it also comes with drawbacks that mainly express themselves as economic inefficiencies. Thats why the EU is so important for Europe.
2) We're holding back. Europe is at the forefront of living standarts, worker protection and nature protection. All these things come at the cost of economic output.
Complacency
It's bad when the companies lose to its competitors in Asia US due to the regulations and bad laws and Germany and France are good examples of that
If your economies don't generate enough money the whole union cracked down
Just look at the protests in Germany and france
“Europe is at the forefront…” of basically everything that determines your quality of life but hey GDP go brrrrr
Whats the point of a large economy if it’s not going to be used to improve the lives of its people?
@@degummybear The scale of it does rising tide lifts all in ocean
I think languages and legal systems will always be one of most difficult things to navigate in Europe, and is one of the largest disadvantages Europe has over the US.
I’m trilingual, with English being my 3rd language, simply because I was forced to study 3 languages by law, as a necessity to function in an international world.
I think Americans often underestimate just how difficult and expensive these things can be to navigate for a company.
There are over 100 native European languages (probably closer to 150), and between 40% and 50% of Europeans are monolinguals, so it’s not as simple as “just” speaking English. And not all multilingual Europeans speak English either.
I think the lack of tech companies is the biggest factor. Tech is the easiest way to sell a global product in today's world. Video games, productivity software, apps, cellphones, routers, antennas. Europe has stalled in tech behind America and Asia.
@@One.Zero.One101 I rather think that the big tech companies simply moved to the USA because of a better environment, etc. While everyone is producing in Asia because it's cheap. Few European countries can supply the needs big companies need to grow and stay competitive, so most of the big shots have their headquarters in the USA, produce in Asia, and Europe is simply some important customer, etc. but not the most important place to be.
At least, that's what I think based on personal experience, etc. Some members of my fam work in the IT sector and their companies send them over to the USA once or twice a year to get into contact with the headquarters and learn the newest stuff, etc.
@@jinpachibobochan3532 Nokia was a tech powerhouse before they fell off due to no longer being able to compete on the software side.
@@jinpachibobochan3532some do move but most tech companies in the US were starred here, especially thanks to WW2 involved setting up tech centers like silicon Valley. Europe really fell behind during the digital age and were slow to change while the US actively encouraged growth. Some of the tech companies they do have aren't as innovative or nearly as large, which is kind of weird when you look at how highly educated Europe is on average.
AI will make it so that no one needs to learn more than one language.
Excellent analysis as usual. Thanks.
Great points made in this video.
Hello, I live in Germany.
Generally I am pessimistic about the future of the European Union over the long term, precisely because of the one aspect not mentioned in the video: aging and slowly dwindling population.
There is also a lot of ideological decision making both in Germany and in the European Parliament, while the Americans are a bit more pragmatic in my view. One example of this is Germany phasing out nuclear power this year before phasing out coal power in the 2030s. In the interim, at times of peak electricity demand, Germany will fire up more coal plants and import nuclear power from France, which obviously will increase the output of CO2 at a time when it should be going drastically down. The last two nuclear power plants to be taken off the grid this year were not even at the end of their useful life. If this is not plainly stupid, I don't know what is.
America is anything but pragmatic my friend. Nuclear is feared and people are trying to shut it down. Ideologies are a mess and no one is able to compromise on anything.
If the global order is to collapse, America would be hit the hardest, and while European nations may unify along political and economic ties that have kept the nations together for centuries, America will devolve into utter chaos.
Why did the population allow this? It doesn’t even make sense. If the population didn’t allow and they did it anyway, why don’t y’all protest like the French?
To be fair, the three nuclear power plants wont have made any difference and economically it probably made sense to shut them down.
Here in Niedersachsen the power plant produced energy that could have been produced by wind turbines. So it makes sense to shut the power plant down and use the cheaper wind energy.
We need a lot of reforms, but people don't want anything to change. That is the issue. We probably should work more not less, or we need huge amounts of productive Immigrants, sadly they actually don't want to come and usually go back or somewhere else (can't blame them). But Germany is still a good place, if you have a good education you shouldn't worry too much about this.
Typical German: Even though the sky is blue and the sun rises, we still see a wholly gray future.
You are right, that germany was a bit indecisive with it's electricity policies. But i think it is moving in a good direction right now. The thing with the nuclear power was a decision from before the climate change debate became so all encompassing and you are right that they would have been useful right now, but i would like for you to look at the reasons as well. It was a decision made after the meltdown in Fukushima where germany decided that humans are not to be trusted with powerplants that can ruin large parts of the continent if something goes wrong and the winds are by chance right. And of course the waste problem although that can be scaled down with Transatomic Power's molten salt reactors. And i think it makes sense, especially at times when tens of frances nuclear powerplants were down because of safety concerns. On the other hand i concure with your assesment of the coal plants, having to reactivate them is very painfull. But that will be sollved depending on the decisions made by the government in the next few years. Even the conservative Bavaria has actual writen laws forcing it to swap to renewable energy till 2040 despite its resistance in the last few years. So things are moving and i'm looking forward to see it happening.
The population issue is definitly a problem but i think it will solve itself once the ocean rises by 1-2 meters as grim as that sounds. There will be alot of skilled people searching for a new place to stay. And if Europe finally gets it's things together and stopped panicking it there will be enough people. And if that thank god doesn't happen, we'll have to say goodbye to a lot of social ammeneties like pensions till the population stagnates or increases again. I don't believe in a endlese decline. The government can take mesures to increase birthrates and they will have to take them. For example you could make having children have economic advantages that actually offput the costs, but that is just kmy humble opinion.
Sry about the rant
US has states, Europe has countries... ALOT of countries. I always observed that as difficult to work with.
The United States has 50 member states while the European Union only has 27.
@@asahearts1europe has countries, not states
Morgan Exactly. Sad to say, all it takes is one member to tank to bring it all down such as Greece. Love the country and its people, but it really hurt the Union with its economic collapse. I don't think North Dakota has the power.
@@andrewrose6051 What is another word for "country?" Google "How many member states does the European Union have?"
@@asahearts1explaning to an american why a country is different then a state is the most amarican thing ever.
I like how you pointed out the smaller creator!! Awesome video, keep up the work.
I'm not used to intelligence in videos on economics, this was a pleasant surprise. Good Job.
I think there are a lot of things you missed and one of them( or maybe 2) is that Europe was the major battle field during ww1 and ww2, and the Eastern is lagging behind the Western even if they have a lot of growth in the past 2 decades…. I think it’s interesting if you made a video about the Eastern Europe vs Western Europe, greetings from Romania 🇷🇴
Well Eastern Europe lagging behind the West has a lot to do with the Soviet Union.
Since the fall of the Soviet Union and joining the EU, the former Warsaw Pact countries have had high growth rates. The GDP/capita (not the be-all) is better than Russia itself, right?
Europe's WWII experience was, at one point, a positive. In the 1970s and 1980s its industrial infrastructure was, on average, younger than that of the US, because in many countries (e.g. Germany) it was largely entirely replaced after WWII.
One thing to note is that a lot of Europe has a very high standard of living, notwithstanding nominal per capita GDP below that of the US. The US is a very unequal society, so averages hide a lot of suffering by those in, say, the lowest 25% of society.
Social mobility is much higher in at least some European countries. If I had to choose to be born into the lowest 10% of society, I'd far rather be born in, say, Scandinavia rather than the US. In Scandinavia you're far more likely to get the opportunity to move up in society than in the US.
@@cv990a4 you are almost entirely wrong.
Much of the advantage of the US is a historical advantage from having been one of the only countries in the world to emerge stronger because WWII happened instead of being weakened or devastated by it. In that chart that showed working hours, notice how Germans were working almost 2,500 hours per year in 1950? It's very labor-intensive to reconstruct your entire country, especially with half of it being colonized by the Soviets for nearly 50 years. :P
The Industrial Revolution happened in Europe first, but the Post-Industrial Revolution happened in America first. While Europe was still re-industrializing after the devastation of war, the US was already in the process of transitioning to globalization and outsourcing by the 1970s, moving factory work overseas. The US had an "early mover" advantage in the Post-Industrial Age that has arguably been slowly chipped away over time, but which is still holding strong.
The fact that Europe industrialized first didn't matter in the end for two reasons: 1) Europe wrecked itself and lost decades just getting back to par, and 2) the world isn't living in the Industrial Age anymore, so it doesn't really matter who Industrialized first. Much like how it no longer matters who invented fire first because fire isn't that special anymore. :P
I mean former “Eastern” countries are beginning to overtake certain “Western” countries. For example Czechia and Slovenia are now more developed than places like Portugal or Greece.
I love how an economist saw numbers 5k and 100k and concluded its one tenth .
Incredible video, an unbelievable mix between music and philosophy
This video provides a valuable perspective on Europe's future.
Thanks for the shout-out! :) Could it be thought that you are refering to this video about Europe's Economic Decline (ua-cam.com/video/ViM_GHOK1yU/v-deo.html) as opposed to the one on Europe's Deindustrialization?
Your video was excellent!
The man himself!
Another point to show EU's priorities, is the iPhone charging cable. EU has put pressure on apple to use USB-C charging on newer phones, which is a gain for the costumer and a loss for the company. I'm sure there are other similar examples that show EU's focus on customers protection as well as workers protection.
They just approved a new law that demands all batteries in consumer devices to be easily replaceable by the user without particular tools. This is done both to address obsolescence due to dying battery and also for recycling batteries. That's pretty cool i think
That's totally nuts .
@@qweds3127 why? With ac appliances it happens also in the usa an the rest of the world, every country has its V and Hz and a specific plug for AC for example. Its basically he same but with DC. On the battery is just a recycling thing, consumers must be able to recycle and so be it
@@tutatis96 @tutatis96
I was replying to the OP on the charger thing .
I find your post interesting although I disagree with you.
Can you give me an example in the USA where govt. has forced a consumer device to stick to a utility based law like that ? I am sure laws like that will be illegal in the US.
Standardizing mobile batteries is not comparable to standardizing V and Hz.
Standardizing V and Hz standardizes electricity generation and distribution which are massive systems installed to work for decades for the entire nation. Think about all power plants, distribution lines, transformers in an entire country. Which is not the same as standardizing battery which just works on your own mobile. Don't mobile repair shops/ company service centers replace batteries anyways if it stops working ? Then how does easy replacement by end user make it more environment friendly ? On the obsolence front , planned obsolesce is a complex topic but forcing companies to change how they design mobile phones is not a good solution imo.
I dont really think thats important at all. I use an iphone in the eu, getting an apple charger doesn't really change anything for me. Is it a bit more expensive? sure. How much? basically a kebab and coffee. That's a meaningless law that saves the customer 10€ in 2 years maybe, at the same time disrupting the production chain of a company that might increase in the price of the phone. That law helps nobody.
What wasn't mentioned in this video is the distribution of income and privatisation. I'm curious how like the lower 80% income earners of both regions compare. Also the US has a much higher level of privatisation than the EU, which usually leads to higher nominal output but decreases the qualitiy of services for most people but the wealthiest. Therefore i would be very interested in a video that compares the standard of living in the EU (which differs in itself vastly from country to country adimittedly) to USA for the average citizen including access to services like education, healthcare ec.
It would also be interesting how the wages of the lower 80% have developed over time in each region.We shouldn't forget as well that the EU has grown a lot over the last 20 years in terms of new member states and new countries often had a very low standard of living to begin with but are growing rapidly since they joined.
Not even just country-to-country, but regions within countries. Admittedly, I haven't seen recent statistics, but last I heard, the Eastern part of Germany, to this day, 30 years after Reunification, still lags behind the West, economically. There is a measurable difference that still endures.
i´m from Portugal and minimun wage is 760 euros a month average is 1331 euros, quality of life and political views change from regions,most live on the coast of country, we are a country that suffers from brain drain since the 80s?, most emigrate to france,uk,luxembourg (one third of the country is already portuguese or with portuguese descendency),switzerland,usa (i think mostly boston region idk), is estimated that 5 million portuguese live abroad, in recent years life is becoming harder especially because of a housing crisis because of golden visas,digital nomads,retires and migrants especially brazillians and indians, the goverment only cares about tourism and helping companies keep salaries low
This
@@weird-guy Portugal has the same salaries as Panama
I'm sorry But this is pure copium. The EU has double the population of the United States. No matter how you slice it the average American is better off than your average European.
I appreciate the disclaimer about predicting the future.
The US can have all the economic growth it wants, I'd always choose a walkable city in Europe to live in over a car dependent hellscape in North America (that's right, you too Canada). Same goes for Japan too really. Stagnant growth but looks like a more pleasant place to live. Growth isn't everything.
It really is nicer. Believe me👍
You're less likely to be mugged in Europe, and FAR less likely than that to deal with it in Japan either. I've never felt as safe anywhere as when I was in Japan, even in my own house in England. Seriously.
There’s pluses and minuses to each space. I like driving so I wouldn’t call it a hellscape in the US.
I mean it’s so awesome waiting for trains that won’t take you to your precise destination OR walking/biking in the rain, cold, wind, snow, heat. At least in my car I’ll show up exactly at my destination and I won’t be sweaty, dirty, freezing, or wet and I will have rocked out to good music.
Stagnant growth leads to a lower development. At this rate China will be a better place to live than Europe bin 2050.
Really interesting channel. I also like the discussion in the comments section. These people know what they are talking about.
Trust me, noone has any clue what they're talking about.
It's all just surface-level understanding of what's going on.
A few facts sprinkled in here and there.
Good one..
Europe actually doesn't have abundant natural resources.
Norway
@@Zavstar the exception not the rule and still has far less than any of the US oil states
Common Euro L
Russia is loaded with resources. The costal European countries have abundant oil.
@@Zavstar I wouldn't call norway abundant
Honestly, I dont think it's that much of a surprise to most Europeans. We don't value money over human life, at least not as much as money-wise richer economies.
When given the choice of making considerably more money than I need or having a 4 day work week, health care and a pension, I'll always choose the latter.
I'm not convinced producing more "value" (= money) really is the pinnacle of development.
ETA: I largely agree with the contents of the video though.
Well said
I’m a jealous American agreeing with you.
You can only be as progressive as you are because your ancestors were colonialists and hyper productive industrialists. That healthcare will only be a thing of the past if people believe that it's just a right and it doesn't have to be supported by work and production. Let's see how long it lasts until you have to go back to working until you're 90.
nuclear, GMOs and the European obsession with regulating everything they touch, only creates a situation in which Europe will always be in worse situations
EU dont value money over europeans lifes, not human Life.
Guardio's security scan is a useful tool.
1:10 This is misleading. If you measure GDP in purchasing power parity (which is what you should do), the economic gap between the US and EU quickly disappears. The dollar is overvalued in comparison to the euro, which distorts nominal GDP figures.
No that's not true at all. The PPP figure is only when counting for domestic services like paying all kinds of bills, paying for internet, taxis and all that kind of stuff. In many cases the EU is actually more expensive that the US. Yet the figure might be distored because the EU doesn't have only developed places but also countries like Hungary, Poland, Romania and Bulgaria where naturally these things are less expensive. Yet even then the nominal figure is what matters the most especially when your country becomes more and more developed. The people in that country start buying more and more stuff. Coinsidering things like electronics are made literally everywhere around the world they tend to cost the same or even in some cases more expensive in the EU.
I just did a rough calculation of what I work in a 40 hr week for the period of a year (not including overtime) - pto - paid holidays. It works out to 1840 hrs a year. For reference I work on the east coast of the USA as a salaried employee.
Average is not median (or whatever percentile you fall under)
12:25 It really is a small world. Just yesterday I saw a Visual Capitalist graphic that showed the number of working hours by country. It brought up some interesting points to think about in its sub data. For example, in Japan there are probably a lot of unclocked hours because of culture, despite recent efforts to change that. And in Germany there are now strict rules about how long the work day can be, with a "long" day being required to come out of the end of the week.
Your small world is called algorithm
@@Clifford_Banes It could also be frequency illusion. The Visual Capitalist just published the chart 2 days ago, and it's a topic I pay a lot of attention to.
It's also not just the hours but what you do with them. Japan has a highly presentist work culture, so even though you might be at work late you won't necessarily be doing anything productive, a lot of hours are filled by inefficient processes or pointless make work, or even no work at all, it's not uncommon for Japanese employees to play games or watch videos while at work waiting for the boss to leave. Contrast that with the US, which still works long hours but has a far more output driven work culture, so those long hours are filled with mostly productive tasks.
People with ths argument always magically forget that for example people in the Netherlands will soon have to work till 69.
That's what you get when you bring in unlimited clowns, give them pension, but they have never paid a share for their pension, so they are stealing..
And because they are stealing i have to work till i die. Isn't socialism so cool!
Europe should reduce its reliance on Chinese manufacturing, as otherwise, it might eventually become dependent on China and risk becoming a Chinese vassal."
I think the lack of tech companies is the biggest factor. Tech is the easiest way to sell a global product in today's world. Video games, productivity software, apps, cellphones, routers, antennas. Europe has stalled in tech behind America and Asia. 📌
Heyka, I missed this analysis of the impact of the type of taxation on the tendencies to integrate firms. In Europe, VAT charged and deducted at each stage of the supply chain is size-neutral. In the US, state sales taxes favor vertical integration of the supply chain within a single corporation. Therefore, companies in the EU can remain optimally small, while in the US they must integrate into one inefficient global corporation if they want to stay on the market. If Europe's problem is too-small companies, the US's problem is too-big-to-fail corporations :)
THIS. While the gigasize might help them compete on a global market in the most aggressive sectors (automoto, arms, CE), they also outgrow its own country and gain disproportionate, harmful control over an average US citizen.
Thanks for this insight. I hadn't even thought of this before now. I wonder how thoroughly the impacts of Euro VAT have been explored.
Japanese and Korean companies have a far larger tendency to be vertically integrated than American. American companies actually look at core competencies.
It's just that Americans tend towards "more".
It is large companies that do some vertical integration, like Amazon doing a lot of it's own deliveries. Smaller companies outsource components and expertise.
Sometimes a company will grow and grow, buying up other companies and sometimes branching out - the inefficient unwieldiness you talk about. That ends up being a mess and consultants/new managers have a long history of selling off parts that are not in "core competencies".
@@Johann_Gambolputty_of_Ulm- Europe completely missed the tech boat because they couldn't create large companies that were competitive. Now they are hopelessly behind. Only Europeans would spin that as a good thing, lol. Jesus they have become arrogant.
Large companies are usually more efficient than a series or small companies doing the same work because of elimination of redundant steps and labor. To wit: the entire thesis of the video is that the US is more productive than Europe because it tends to have more large companies.
One interesting trend I notice is that some corporations in Europe use English as their lingua franca to attract a large potential talent pool and make it more competitive.
after the globalisation lead by the british, english became the language of business. If you want to expand internationally or even beyond a certain size then you need to have at least a reasonable grasp of it
@thesherbet I don't mean it in the sense of knowing English so you can interact with your business associates in distant lands. I think that is the usual interpretation of the concept.
What I mean is a country like the Netherlands using English as the lingua franca of intra company communication so that they can attract workers from other EU nations and even the wider world to work in their companies in places like Amsterdam or Utrecht.
This makes sense for companies competing on a global scale.
It’s the official international language of business.
@@stevedavenport1202this is not true in the slightest. If they speak english that means they do business internationally or have some kind of responsibility internationally.
Otherwise, it’s dutch all the way.
@@stevedavenport1202 companies who do this are those who have a lot of foreigners working in them. otherwise it's counterproductive, as functioning in your native language is more efficient.
How did this pop up as a recommendation for me?! I’ve never been to Europe and don’t plan on traveling there anytime soon😂. Very informative! I also love the accent.
4:37 There's something to be said about population lagging behind the industrial growth when it moves that fast. People generally just don't adapt to change that well, especially as they age. There will be a lack of experience, as well as established education systems in place as well as cultural changes that need to happen. While the best of South Korea and China can rival their western counter-parts, between that and bottom there can be a wide gap. Though the lack of experience can be considered a good thing as here in the USA we often have old executives who stifle innovation because they use "that's just the way we've always done it" as excuse. A green executive who doesn't have an established set of "ways he's always done it" and in fact is still learning might be a blessing.
I feel like you have already done this, but if not, then a video on working hours, worker productivity, investment in worker education and training, investment in research and development per capita among various countries around the world would be very helpful.
Overregulation and lack of innovation? It seems like the EU (from an American perspective so take with significant salt) always wants to regulate rather than allow innovation. I read somewhere that America is innovation without regulation, Europe is regulation without innovation, and Asia is somewhere in the middle of that spectrum.
Well in europe we have a lot of right's concerning working and work/life balance so innovations that are related to work have it much harder to be implemented quickly
Where exactly is the “always” from “always lagging” (as in this video's title) in the graphic at 1:10 ? 🤔
Another reason that i don't see mentioned much is that Europe is very far ahaed (in my perspective) on environmental meassures. I work in the heavy industry and have worked for several compagnies in that industry so far. Very often we drop a project that increases efficiency and growth because the money has to go to a new environmental measures. In my opinion this holds the EU back for now, but the rest off the world will have to follow and the EU has a head start.
Environmental stuff depends more on the member states than the EU itself I sense...
I agree. Alot of things which seem redudant nowadays could get relevant very soon internationally.
Why would the Rest of the world have to follow?
We can just all continue bussiness as usual with the motto:
"I am all for making my economy less efficient for the sake of the Environment. But you start."
Oh, how I love us killing the little blue ball in space we call home.
footprint per capital doesn't put the eu much ahead, and the problem can't be addressed until the world is on board, the more you retract the more China will guiltlessly use.
Few towns in Europe can match the air quality of similarly-sized places in America. European countries, which rely heavily on diesel-fueled vehicles, remain far behind the United States in their efforts to reduce harmful air pollution, according to a report to be issued by the World Health Organization.
Love ur content, rly makes me learn a lot about economics keep up the great work
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
@@lloydbernard5847 As an investor, you should be aware that even with the best strategy and resources, some investors would still outperform others. In my case, I needed to consult a market analyst for advice in order to grow my account to almost $1 million, withdraw my profits just before the correction, and start buying again.
@@lloydbernard5847 You should be aware as an investor that some investors will still outperform others even with the best strategy and resources. My situation required me to seek advice from a market analyst in order to increase my account balance to almost $1 million, take a profit just before the correction, and begin purchasing once more.
That's amazing! My portfolio has taken a severe hit, so I could really use their knowledge. Who is the one directing you?
I have "LISA ELLEN SHAW" as my investment advisor. She has a solid reputation in her field and is a true genius when it comes to diversified portfolios, which help portfolios be less vulnerable to market downturns. She may be a name you are already familiar with; a Newsweek piece helped me to do so. She's a Google-able person.
@@lisaollie4594 I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
Doesn't has to catch-up anyone or any country with all sorts of dramas, they are completely ok. Europe has a unique cultural heritage and diverse economies that contribute to its competitive advantage in the global arena. Additionally, it leads in many areas of innovation such as healthcare, renewable energy, and sustainable agriculture thus it's important to recognize that competition should not always be the driving force and that each region should focus on leveraging its strengths while addressing areas of improvement to ensure equitable development and progress. ☝️🙏
Guardio covers a specific security gap.
Another thing to consider regarding this topic is: who makes Europe. Because, when you looked at Europe's big companies VS the US and Japan... You considered Europe as whole. But in this includes countries such as Bulgaria or Greece, who struggle economically (even if they are doing better and better). These consider thus have no major companies to rely on, yet they make up a part of the EU ...
I always kind of hate it when people compare the EU and US because they do tend to cherry pick things. They focus on the wealthiest and most successful parts of the EU and tend to discount less successful and less free parts of the EU. Like half of the EU dont recognize or allow gay marriage but people will focus on LGBTQ+ rights in places like the Netherlands and when comparing things like incomes they'll focus on really wealthy places like Luxembourg and Germany but will ignore most of Eastern Europe and the Balkans. The US has similar extremes: I live in a medium sized city in a medium sized county in Washington state and for the same price of a 100 year old 1 bedroom house here you can get a nearly new 3-4 bedroom house in most parts of the US and that same amount wouldnt get you a shack in large parts of California.
@@arthas640thank you yes! EU is a set of countries that independently are small and weak, and not as wealthy. The US is just one country. As a gay guy, thank the Lord I'm sorta safe in any state vs EU having literally countries I'd have to avoid. Also have they seen the population and wealth of just California? I'm 28, earn $115k+, no debt, and over $100k net worth. I can't even get a tiny ugly 1 bed house here in any coastal county! Of course if I'd move to Kansas I'd have a mansion.
@@arthas640 The point about housing prices is roughly the same in Europe. Getting a tiny apartment in London would mean you could be close to a King/Queen in the poorest countries of the EU.
@@djm2189 I don’t think that is really true. I can’t think of a single EU country where you would be unsafe for being gay. The worst is Hungary but I would say that seems only as bad as some areas of the southern and midwestern USA. Being trans is another matter. Even the Catholic Church seems more chill about gay people than the US evangelicals.
To put it in comparison I’d struggle to feel safe in any American state given what I have heard about your police forces and the fact that so many people carry fire arms for self defence. I come from a rural background in the UK so I a have seen plenty of guns but never with the intention to be used to shoot people only animals.
@@Jay_Johnson There is no point assuming things about another country based on things you've heard on the news. I've been to a few places in the EU and the US. Honestly most folks are just trying to live their lives and earn a living. The "bad people" you hear about make up almost nothing compared to the whole population. The media is the enemy of the people.
I was going to say they probably care more about their people than the US does. Especially since there seems to be a bunch of companies in the states just going back to child labor. 😩 As a US citizen, I'm very jealous of their work-life balance and how they're treated.
As a Japanese, I'm jealous of both.
I would personally prefer to immigrate to Western Europe instead of US, because America is stupid to fit in my standards.
@@yuki-sakurakawa japan sounds like output all else work-life balance maxed out to work.
i would rather choose EU comfyness tho being more comfy has a big value on its own in my opinion that doesnt show on gdp ppp. non monetery personal value
Would rather live in Africa,then Japan because they're Struct culture is craaaazy
Not true, Japanese fake data
Hey, would it not be easier to put in the description of this video the link to the videos you refer to?
Protecting sensitive information is a top priority.
I think the missing thing is the metric itself. Its a nominal GDP. If we will look at GDP adjusting purchesing power parity which includes currency rates and different prices it will be pretty much the same in the last 20 years. As many people mentioned before me there are aging population in europe, no natural reasources, focusing on people's wealthnes and work-life balance. I think the best metric would be GDP ppp per worked hour. Overall the standard of living in rich EU countires like Germany, Denmark, Sweden or Netherlands is much better for average citizien then it is in the US and that's what really matter not the economical metrics.
Each system has its advantages and disadvantages. If productivity continues to fall in Europe, due to the many factors listed in this video, and their industries become less competitive they will no long be able to offer as generous paid time off. The UK's low wage economy and France's attempts to raise the retirement age are clear examples of governments who promise more than they can deliver. When economic growth is sufficient, literally a best case scenario, the government can probably meet its obligation and fund all of the benefits their citizens have come to rely on. But when times get tough, and government revenues are down they scale back on their obligations and the people suffer. The UK is a prime example of a government who over promises and underdelivers.
@@a00141799 I agree, UK is probably in the worst situation. They closed all the country cousing 10% GDP fall during covid and in the same time they left the EU cutting suply chains. And right now we there is a next crisis due to war. I think without the Brexit the UK could recover but right now I predict it will be the next japan. France on the other hand has the same problems for years. Complicated law, stupid imigration policy, socialistic society. In the terms of taxes and law I belive UK's goverment is doing much better work but considering all the reasons I mentioned before they are in much more sitation. But those 2 are specific examples. Within EU there are countires which are doing really well like Estonia, Poland, Romenia or Denmark and the Netherlands. Our future will be interesting for sure!
The US generally outperforms Europe economically, no matter which measure is used. For example, France and the UK have a nominal GDP per capita of $46K and $44K (respectively), compared to $80K in the US. A ratio of 0.57 and 0.55, respectively.
If you switch to GDP (PPP) per capita, France and the UK have $58K and $56K (respectively) compared to $80K in the US. A ratio of 0.72 and 0.7, respectively. Still well below the US.
Your comparison of Denmark and Sweden to the entire US is cherry-picking the data, since you're comparing the richer parts of Europe to all of the US. To do a fair comparison, you'd have to compare Denmark and Sweden to, say, New York and Massachusetts (which are both significantly richer than the US average).
The average German citizen isn't better off than in the US, since "average" is exactly what per-capita GDP measures. The only thing you *can* claim is that poorer German/Swedish citizens are better off than poorer US citizens, due to the European social safety net.
@@Unknown-jt1jo I totally agree with is reckoning. Well stated!
@@Unknown-jt1jo Yeah they do, in the metrics. Average american works 1757 hours meanwhile average german works 1354 hours per year. As I mentioned before, the work-life balance is much better in the EU and overall I think it is a better place to live unless you are a top 10% of the richest.
What about the episode about Poland? 🕵🏻♂️🇵🇱
I like how you pronounced "hammaa"😅
6:21 my dude's installing a brake disc in a jet engine💀
Lagging behind economically maybe but not in terms of human rights, regulation, quality of life, and pretty much everything else that matters. This is almost the definition of money isn’t everything.
When you continent is in poverty and overrun with Arabs, and Africans, we'll see how your quality of life continues or human rights
@@NA.NA.. did you seriously just say this in 2023….
Edit: wow I can’t believe that comment has 36 likes. What a disgusting set of humans.
usa also has that . usa is so big . so many safer states.
@@MatsueMusic john oliver moment
@@NA.NA..compared to other first world countries. AmeriKKKa is a third world country. AmeriKKKa infrastructure is garbage and its healthcare is nonexistent. If you get sick in AmeriKKKa it’s cheaper for you to just die.
Europe's competitors or peers are allready reaching their maximum potential. Japan is stagnant for a long time, Korea also expended its economic model and has deep social problems that would need to be adressed, China's growth model seems unsustainable and it seems to be exausted at 1/4 to 1/3 of GDP per capita in Europe. USA continues to be a world leader and fortunately it will continue to be for a long time. That said, I'd never change european social model for US one.
Japan has been ageing badly for the past decades and the working age people are continuously shrinking. Japan is not also not that open to let immigrants come in enmasse like the EU so workers are hard to get there. Them stagnating means they are relatively doing really well and kind of growing. Europe, while also ageing, has been open to immigrants like the US. Japan is still massively more impressive than Europe, albeit just as highly flawed.
The issue is that if the US changes it's social model to stop subsidizing Europe, your model isn't viable anymore.
@@IFRYRCEsubsidizing Europe? Explain what you mean.. and please for the love of god don’t mention military
It's arguable that China's growth model was mostly a lie. How much stuff is produced but not consumed? Think of ghost cities. That's just wasted resources.
@@wafercrackerjack880 If world birth trends continue at the rate they are, some new economic system is going to have to be created to deal with the declining world population. You can't have economic growth with declining population. Any business that has less customers year over year is nightmare fuel (think newspapers).
Counting hours worked does not equal how hard people work. I've lived in many countries and overseen works in many more and it often feels like there is an inverse correlation between hours worked and production
Notably, productivity is also based on how wealthy a country is. A cashier working in the Bay Area is somehow a lot more productive than a cashier working in a developing country
Exactly. Im amazed that such a simple concept is still lost in translation. Adam Smith: Wealth of Nations. When nation produce more, it consumes more. Natural resources are not wealth creating, production is. Many people dont underdstand this and think that Africa is rich because it has tons of resources, lol :D
@@Zoltan1251who tf thinks Africa is rich lol
@@DivinesLegacy Nobody. Im saying tons of people on the internet think Africa is poor because everybody is stealing resources. They think, if they got paid for it they would be as rich as the west. Doesnt work like that. You have to produce products to be rich.
This... definitely paints an overly-rosy picture of the future of Europe. It completely ignores demographics for starters.
Also, I'm pretty sure the decline of globalization is disastrous for the European economy, since France and Germany are export heavy economies. Meanwhile, the USA would actually benefit, since it's import heavy.
Thats why Europe is importing northern Africa and India into its conglomeration; to diffuse the population 'bom.b'. All those migrants are displacing many Europeans, driving the costs of living up, suppressing Europeans natural inclination to have families, and further necessitate the need to invite more 'refugees' in.
Loved the deep analysis you made. It's a book of knowledge for an eco student. Love your editing as well
Oh, those last vowels in each sentence.... So funny.
The value of services cannot be underestimated.
I think the phenomenom can be partialy explained by the diffrent priorities that europeans have in contrast to the USA. A european that has a job that pays him enough money to live a normal life without big sacrifices would mostly don't take a new job that pays 100% more but you gotta no life it or its something thats not fun. So we priorities a happy life over a financially sucessfull life.
Plus not needing to dread medical bills also helps
Often, self-inflicted medical bills. Too much accumulated stress, not enough pto, too much unhealthy food, and not enough exercise due to poor worklife balance may be the cause of many medical bills.
Lol salty Euros. “hEaLTh CaRE tHo”
@@abdiganiaden salty or content? 🤭
So far its people saying "im ok with how it is because i dont have to pay out of my nose for healthcare"
🤣
You want to say "im fine with paying for healthcare because it makes me proud that my country tr scores hihher in comparison"?
If not, isnt it you who is salty?
@@TheGahta I’m young and healthy and have health insurance thru work. You guys always talk about exceptions like it’s norm.
Plus our disposable income is greater than your entire paychecks so keep your long wait times basic health care.
Most Innovation comes from US anyway including medicine.
Hey, could you a video comparing dictatorships like China and Singapore against democracies like US from an economic aspect
Singapore is a democracy, it just has strict laws but that does not make it a dictatorship
We can't call the American government a democracy
China has a parliamentary constitution. Also elections do exist
@@heptex8989😂jokes
@@heptex8989Yeah they love to elect one party from selection of one party
Please do a video on the economy of Denmark. Small country based neither on oil wealth nor international banking, like comparatively sized successful economies like Norway, Ireland, and Switzerland. It's diversified and is commonly thought to have an economy that's too big for its population. Help us understand it better.
Maersk is bigger and more influential than most oil and international banking companies you know )
The middle-income trap is a delicate challenge.
Basically when it comes to wealth and the strength of the Economy. The us is able to do much better … when it comes to overall quality of life. The Europe majorly beats them.
people who live in the new england states, the pacific north west states, and hawaii are probably lauging at this comment.
Orange does exist outside of europe. It’s a major competitor in the Dominican Republic (though using a different name)
I saw them in Tunisia too.
We are busy having a nice time 😊
Working hours aren’t really showing productivity.
In a lot of countries employees like to check there Facebook and do other things at work while in countries with less working hours employees can be very focused on there working times.
There’s even a research on the Japanese working hours and productivity. It showed that a lot of employees at work the whole day but often not productive.
Europe is "lagging behind" in terms of GDP. But there's more to life than that.
Europe has a very high standard of living, paid vacation time, paid maternity and paternity leave, parental leave, more workers rights in general, fewer low paid workers and a better social safety net. Less economic insecurity.
We also have less financial corruption in our politics (US politicians depend on wealthy donors to get elected and re-elected, and the Supreme Court has outlawed pretty much all restrictions on money in politics). Money in politics is still a problem but legalised corruption is waaaaay less of an issue than in the US.
And while european economies are still ecologically unsustainable and need a huge green transition, we are nowhere near as bad as the US in terms of how wasteful and environmentally destructive our economic models are. We have decent public transport and are not quite as dependent on fossil fuels as the US is.
European politics, for all its many flaws is not so insanely polarised and fact-free as the US is.
Europe has its problems but overall it is a more egalitarian, more humane and moderately more sustainable economic models than the US.
first go live in the usa for a while then talk . stop watching neews .
Look how that green movement is going 😂 that green movement pollutes more than fossils fuels
Absolutely agreed in all points
Don’t look up !
"Sustainable" on the back of the American military. The USA, for all its invariably many faults, is still way more productive than most of Europe. Also, the future is very dubious for Europe due to many factors like migrants, declining native birth rate, a hostile nuclear neighbour etc. that will undoubtedly have an effect on welfare states of Europe.
Europe is not a monolith, neither is the USA. Both have their faults and benefits so not fair to put down the USA at every stage whilst ignoring Europe's problems.
This comments section is totally going to be a bastion of civilized and non-controversial discussion..
As always!
Oh I can see all that gravitas manifesting already lol
It's always nice to hear an Aussie say 'Todie'.
Love your videos and Really respect you mentioning @intoeurope 👌🏼💪🏼
Adding an extra layer of protection is wise.
There's a lot about Europe I admire, even though I'd never live anywhere outside of the USA. But geography/natural resources and raw population/productivity is really at the heart of it. Anything else you list rests on top of those. It's the sheer scale in the U.S. that gets us to the top, not necessarily that we're smarter or harder working than anyone else. Only China and India, the billion person club, have more people. A professor of mine once called it Western prosperity on an Eastern scale, and included Japan in that. I think it's pretty accurate.
I'm sorry to break it to you, but your theory is deeply flawed and just plain wrong. Why is that? The EU has a much bigger population than the USA (it has 447 million people, while the USA has 332 million). Europe as a whole has more than double the USA population (748 million).
Europe's population got devasted in WWI & WWII. A lot of the continental industry was smashed. The USSR also wrecked a lot of the remaining industry in the Eastern European countries they took over.
Post WWII Europe had to rebuild while the US simply built. That's several decades of advantage right there, setting supply chains, name recognition, creating immigration of the educated, building a capital advantage.
Being one large country certainly helped that growth, but not being wrecked was probably a bigger factor.
@@recoil53 Fair enough but we've been the richest nation since the late 1880s. The only thing that changed in 1945 was our military commitments. We didn't need Europe to get wrecked to be on top.
@@kilpatrickkirksimmons5016 Well, building a nation on highly productive vast swathes of land using slave labour would easily net more profits than a bunch of colonial powers having to fight off each other as well as subduing resistance in their colonies. I'd say that with or without the world wars, the US was always going to have a significant advantage over Europe both in terms of a unified administration as well as scale.
@@bazingacurta2567Leaving aside the fallacy of treating the EU as anything like as coherent as the U.S., you'll note I listed other factors besides population. It's the scale of the prosperity which was my point, not just number of taxpayers.
Lots of people listing additional reasons for this trend so figured I would weigh in.
There is a pretty huge ideological gap between the US and Europe that the video touched on, but I think is a bigger factor than disclosed. There are countless examples of Europe actively making companies less competitive to improve worker protections, improve local competition, maintain safety and protect the environment. But it goes a lot further than that, you might argue that the US economy is 'Cheating' by allowing some entities advantages they shouldn't maintain. Their obsession with creating monopolies is a good example. The US economy has sacrificed a lot of its local competitiveness for global competitiveness. This creates huge global 'value adding companies' if you like, but decimates local economies.
It's blatant, being a European in the US, its shocking how little choice the consumer has. You get to pick your favourite company from about 2-3 options for each product you buy. If I want to buy my groceries, I can pick from a range of larger providers, like your super markets etc, but also, a long list of local producers, artisanal products, allotment shops, individuals making unique versions of products, many of which would not be competitive on a global market, but most would argue are far superior products. I'm sure you get 'craft' and artisan products in the US, but I found very little compared to anywhere i've been in Europe, or most of the developing world actually. It helps that I prefer variety over consistency, and not everyone would agree, but as a general rule, I think most people like options. That's sort of the point of the capitalist model.
Another example might be the lack of public services in favour of 'value adding' industries, such as health care. There is no argument over this, despite what half of the US seems to think, its just flat out immoral. Creating wealth for a few by disallowing medical treatment to anyone under a set income is objectively cruel, unnecessary and draconian.
A rather shocking statistic:
"The United States ranks at 129th ('On Public Safety') with a score of 2.44, marking the country's score "low." Just above the U.S. is Azerbaijan, and just below is Brazil."
If this is how the US has amassed its advantages over Europe, so be it, I know where I would rather have lived for the last few decades, and for the next.
Ironically I'm a US citizen who moved to Europe and experienced it. Once I saw the difference, I'll be honest, I was extremely angry and heart broken, The sheer level of sacrifice of everything in life for the sake of growth and consumerism is worlds above Europe. And not in a good way. It will be very hard to convince an American what their country has done to them, though. For that reason, it's unlikely to get better for them until something forces them (their Gini index reaching 50+ or the petrodollar dropping off as a global reserve currency) to realize it themselves.
I think what Europe should be much more worried about is their birth rate. They have much more social nets than US citizens, which should make them more comfortable to have children. If they similarly do not realize this, they too will end up forced to realize it (nearly losing all of their native demographics either naturally or by being dominated by other growing regional powers).
@@timjrgebn very true, Europe has its own set of issue to work out.
I'll be honest, until we fix the climate issue, I really am not worried at all about any long term issues for any economy. We will all be in the same boat in 20 years, regardless of how well/badly citizens are treated.
A declining population or ageing population are also only an issue in a system based on continuous growth. I really hope we are smart enough to replace growth based economies in my lifetime, whatever form that takes. It's that, or we crack fusion, or we die out as a species. Not a lot of room to maneuver there.
@@samdenton821
Read a research paper titled "66 Million Years of Earth’s Climate History Uncovered" at UC Santa Cruz a few days ago. Assuming we do figure out how to limit our climate, it seems our global climate has only been naturally stable for the past 10k years out of 66 million.
I 100% agree on the growth mindset, though. Even if we learn how to survive a turbulent climate in the future, we'll only deplete our resources faster and faster with this idea of eternal growth. Somehow, we've lost important perspectives with our role in nature and the importance of human life. We're all on this floating rock together, for how long and in what state is up to us to think wisely on.
I also hope we can find better systems to replace our "forever" growth economies.
@@timjrgebn As an uncertain European: Don't you think eventually Europe will face huge economic problems with bigger corporations leaving or producing in different countries? The automotive industry in Germany may struggle with electric vehicles being the new standard. And if Germany, the main driver of global competition for Europe, starts to regress, I can see the whole EU struggling to produce value. I think the lack of innovation here and the focus on local competitiveness plus a bad demography as well as a low access to natural resources with Russia being ditched, will lead to Europe falling further behind.
I can see where you are coming from stating that the USA sacrifice a lot of personal benefits for the sake of growth (and that may have been why many Europeans had a higher standard for living with the social nets and worker rights). But I personally fear that Europe will become meaningless when all other nations focus on growth while we have had great past dozens of years and may still have a few more. In the end though, everyone could surpass Europe leading to us having a low standard of living in long term.
A significant fraction of the 90s productivity boom was driven by Wal-Mart driving small, inefficient shops out of business and consolidating supply chains. Much of that gain in productivity went to workers at the bottom of the income distribution and even people previously excluded from the labor market (the 90s labor market was that tight).
whats your information source? where from is this data obtained? just wondering since in uni we hear very often that information is worth nothing without a trustworthy source :o
awesome videos tho!
That Guardio ad would be great for my grandpa who clicks on every thing he sees
I'm quite interested on why you didn't mention red tape and over-regulation that effectively can be the difference between life and death for businesses (and has innovation dead in the water here in Australia). For the little I know about the USA and the EU, the latter seems way more interested in regulating next to everything while the US seems to give businesses much more room to go bananas and reap the rewards.
Heard it's easier to start a business in sweden now than the us. And it wasn't from a raving socialist. It was from the Milton Friedman Association.
That’s true, come here if you wanna start a business. Fail a bunch, then eventually. Strike gold.
@@Spabsa no. A lot of companies start outside USA, then move to USA to exploit the system, cause your democracy is ran by companies, not the people. AKA if you're rich, move to USA to get richer. USA has very high wealth disparity.
Funny how some of the most regulated countries in the Europe, the Nordic countries, seem to have more big businesses, more startups and millionaires per capita.
In many ways I think that failure is the specialty Americans know and understand to an art, we how to use it to our advantages. A lot of countries fear failure, given that failure typically means it’s the end and chances are there is no retries. There are plenty of countries that have learned to take their chances, but a good chunk are withholding themselves from making investments into projects they cannot afford to lose.
Meanwhile, failure to Americans is part of the learning process, and to us we might not want to fail, but what we hate more is an opportunity to slip by. So culturally, or at least it used to be, it was more important to encourage others to try taking those chances. And if you found yourself down, if you at least had a good community, they’d come to help support you to get back up and to try again. Over time, we’ve learned there is value in “failing,” if a person actually has the intelligence to study then they’d take advantage of the mistakes made and find ways to correct it. So through failure, we learn how to succeed. Taking taking risks might means there’s a chance for loses, but there’s also that chance to gain too.
Best way to sum it up is the infamous quote of Edison “I did not fail, I just found 1000 ways that won’t work.”
I'd be curious about how much of USA's greater growth can be explained by massive QE that doesn't seem to depreciate the dollar either.
Feels like an easy way to enhance capital and harness the multiplier effect not available to Europe since it doesn't have the world's reserve currency
I’ve heard that Europe “printed money even more then US during COVID but I could be wrong also.
The dude running this channel is an America simp. Literally all his content is "Why America is the best and everybody else sucks". He would never mention anything like that.
Europe had the world reserve currency but got outcompeted. We’re on the decline, lazy, complacent and entitled.
It does depreciate the dollar, as we've seen from recent inflation.
@@johnl.7754 Yes, you are way wrong.
I think there is a possibility that Europe is a more mature economy. You see a lot of Americans questioning their current economic priorities and slowly losing industries to developing countries with lower wages. It's quite possible that the USA will eventually go the same way...
Sweden alone produced more international brands and global corporations than most US states, not to mention France, Germany, the UK, Netherlands, etc. Europe is doing just fine when it comes to every single metric I care about. What you call stagnant I call stable, what soon will become circular. The only stagnation I can see is happening inside the heads of mainstream economists, they still think in obsolete ideas and absolutely refuse to change their rigid thinking.
keep your head in the sand, lazy Eurognamus.
Name the Swedish global corporations.
@@TheTapeandscissors Volvo, Scania, H&M, Oriflame, Spotify, Electrolux, Ericsson, Ikea, Tetrapak. Also ABB and AstraZeneka were part Swedish before mergers, but still have considerable presence in Sweden.
@@sergeymelkumov5940 I haven't heard of 3/4 of those (plus Spotify is becoming heavily Americanized) whereas the US has a hundred companies I could name (I'm a Russian)
@@sulkel if you haven´t heard of those companies maybe you should not comment on global economy and expand your knowledge base first.
P.S. funny thing, I only listed those companies that actually produce consumer products. there are also tons that are industry specific and mostly known for B2B products that understandably normal people might not know about. since you are Russian, might have heard about Tele2 and Saab? ) Paradox entertainment and Dice if you are a gamer? not bad for a country with population less than state of Ohio (name same amount of companies that came from state of Ohio) or city of Moscow.
You REALLY couched the lagging growth as bad thing, but economic growth is not be all goal of economies. Cancer grows fast also, but no measures health by the quantity of tumors.
A MUCH better indicator of economic health is median per capita income.
per capita income is directly tied to economic growth
@Cecilia-ky3uw You clearly don't know how the terms "capita" and "median" can strongly impact that relationship.
The US has the highest disposable income.
Lagging growth is the be-all-end-all in the face of growing debt. Debt is the tumor here.
Define "capita". One problem of comparing the US vs. EU is both use different ways of collecting and reporting statistics. For example, Europe has a "crisis" in infant mortality..... if you use the American definition of "infant mortality. But European (and the rest of the world) statistics use a different definition, so it doesn't.
There seem to be a lot of videos about Europe is a healthier place to live. These videos describe the universal health care systems, the cities that are set up for healthy walking and cycling, the better diet, more time for important events in life and life itself. I've never been to Europe, but it begs the question as to whether these folks are behind. Europe has also had a long term disadvantage of more expensive energy which has hindered them. I suspect new nukes will be built in the next generation which will essentially nullify that hindrance.
I do have some skepticism about this. I'm not convinced that you can call society "healthy" that isn't replacing itself. Practically every single European nation has sub-replacement levels. By the way the US also has this issue, just to a lesser degree.
Having lived in both, this was my experience:
1. US has a stronger economy. In terms of economic growth, they are very smart. In terms of social stability in growth... um... not so much.
2. Europe has a weaker economy. While they are smart with economics, they have a certain moral against "growth at all costs" like the US does. For this reason, their social dynamic are more stable so far. In my experience even in Eastern Europe, the quality of life was A LOT better than my life in the US (lived in the Mid West and major cities).
I agree about the birth rate, though. I think the reason is the quality of life there (compare Gini indexes and life expectancy) has made them less "concerned" with having kids. Aside from South Europe, I don't think the reason for their low birth rate is the same as for the US. One is likely because they are too comfortable, the other likely not comfortable at all (again, compare Gini indexes).
TLDR: Both have gaping blind spots. Choose your poison, they are both fatal.
@@rathelmmc3194 Even Bangladesh have a fertility bellow replacement level. This doesn't mean that it is not a problem, it is just a one that most of the developt world has. US is an exeption.
Nukes are for war..
You're referring to Nuclear Power plants, Right?
@@frantisekhajek6775
US isn't that much of an exception. Use still has a fertility rate below replacement, aside from their more rural Midwest area trying to push it up (which the US tends to ironically disparage with their politics).
I agree, though, this is a general problem around the world. The fact most parts of the world are having this issue for many different reasons, except India, makes me wonder if this is just unavoidable. If not, we need to at least understand why it is happening and address it without throwing useless polarizing politics at it.
Neat
I would really like to see two other comparisons rather than just GDP growth. These are GDP per capita and GDP per working age person, say 25 to 60 year olds. With massive changes in demographics and declining populations in some countries, this will give a more accurate indication of productivity and real GDP growth.
Great video - this is an issue I’ve read elsewhere and is not really discussed. In Britain we have a particular problem with a lack of business investment as well as being good at starting new companies, but not as good at scaling them up. With many British start ups eventually moving to the USA to be listed to get access to more capital.
However, I got frustrated with the definitions. At times you refer to Europe as the EU27, and at other times you refer to Europe with non-EU member states like the UK, Ukraine and Kosovo. I do think it’s important to be specific.
He's from Australia; from his perspective, those of us in the Northern Hemisphere are all just weirdos clinging to the underside of the planet, like barnacles on some vast ship. Who would name one barnacle differently from another?!
The uk fucked themselves with brexit imo, i think the consequences will be more impactfull than they thought.
Some of the eu problems are an aging population,high burecracy, different laws and regulations across member estates,some countries are very protective of their own country, germany and france basically ran the eu leaving other member feeling sour and unsure of the future.
aggregating the eu into one i think is not good and doesnt give a correct picture, also he interchange between eu,europe an
@@StochasticUniverse wow so xenophobic
@@weird-guy Brexit??? M8, the UK has been declining since 2008! Actually, some figures improved over those last years! The problem is not Brexit, but all the political parties in power!
If you were an ambitious person and wanted to start your own business, would you rather be in Europe or the USA? Conversely, if you weren't ambitious and wanted to live a more stable life with better work-life balance, which would you prefer? I think the answers are pretty obvious and can explain part of the economic dynamics of each region. The weird thing is the suicidal plunge in birth rates in countries like Italy, Germany, Spain, etc. You would think with all these social safety nets and pro-family policies in Europe that people would feel more inclined to have kids, but that hasn't been the case.
Lagging behind in your definition, but surely not when it comes to living standards, education, environment, health care and so so on.
The truth of the matter is…. It doesn’t matter. Are you happy? Are you healthy? These are the questions that matter not your GDP
I love the little economy of my home… Australia ❤
I do think Europe and more specifically EU has work to do when it comes to unified economic systems, investing and such. But really the issue is that Europe is not single country. EU is quite successful both politically and economically, but we still work as co-operation of individual nations, with varying economic and political systems. I think political systems will always differ, but there could be some work to be done to standardize some economic aspects across the union.
Ultimately problem is two world wars, and fact that Europe is just not a single country. Honestly there's really nothing too complicated about it. Well it actually is, but if we take broad overview it is.
US on other is massive country with a lot of people in extremely secure and advantageous geographic area. Militarily and economically. With a ton of natural resources to boot. And it escaped destruction of world wars, loaned a lot of money in process to Europe and overall enjoyed position as world's sole superpower thus being able to leverage that for advantageous dealings. US basically has won lottery one after another since they have been a country.
This ignores the fact that Europe had half the world at its disposal. They colonized continents with more people and resources than the US.
Won the lottery since its foundation?.. You’re forgetting that the US started out quite poor. Towards the end of the 18th century it had just broken its chains from British colonial rule and was still predominantly an agrarian society. Meanwhile, Western Europe at the time was reaping the benefits of the industrial revolution and the wealth it generated from its colonies overseas.
@@DCampusano1having all your land on tthe coast (and a pretty good coast lets say, western coast ain't that much good) is pretty helpfull
Economic conditions can change quickly, especially in a dynamic global context.
I have watched this video a few times. Every time I get a more deeper meaning of why there is such a divide. Thanks for thoughtful explanation!
The elephant in the room from the social safety net in Europe is its dependent on young working class citizens contributing to the taxes. Last I checked Europe as a whole is getting older and people are having less children even more so than in the US. Eventually the taxes will outstrip any working ability or work efficiency. The taxation doom spiral comes for all eventually